5 telematics trends in 2022: How AI, IoT, and 5G are transforming the auto industry

Codal Inc.
4 min readJun 7, 2022
In this article, we discuss the key telematics trends in 2022.

Here at Codal, we’re currently working on a project that leverages cutting-edge GPS technology for one of our clients in the car rental industry — so in the past few months, we’ve learned a lot about telematics. This technology is rapidly evolving, and our team is fascinated by its current and future potential.

Telematics systems involve connecting IoT devices, like GPS sensors, to business assets, like — in our client’s case — rental cars. This allows the business to collect, analyze, and interpret key performance data regarding the asset. For example, our client’s telematics system allows them to track the location of each rental car — along with its oil levels, tire pressure, engine performance, and other mechanical conditions — so they can conduct preventative maintenance in an efficient manner, avoid vehicle downtime, and ultimately provide better customer experiences.

Since its birth in 2010, vehicle telematics has created an abundance of opportunities for businesses in the automotive industry. Fleet management companies, in particular, are improving operational efficiency, lowering costs, and creating safer working conditions by adopting telematics solutions.

However, many businesses are still stuck in the old ways of doing things when it comes to shipping, logistics, and other practices that require managing a fleet of vehicles. In fact, only 40% of fleet managers use a telematics system to monitor and maintain their business’ cars, trucks, trailers, and so on. These numbers are sure to rise over the next few years though, as technologies like AI, IoT, and 5G become more advanced, and telematics systems become faster, smarter, and safer as a result.

Let’s take a look at some of the key trends surrounding telematics in 2022.

Expanded connectivity

In the telecommunications space, the update from 4G to 5G in 2019 created faster network speeds, lower latency, and higher data capacity. Now, 5G is innovating fleet management by helping businesses gain more control over their vehicle data.

With this robust mobile network, fleet managers can collect greater amounts of information over shorter periods of time. And they can access this data, as well as communicate with drivers, remotely via their smartphone — a feature that became essential during the COVID-19 lockdowns.

Real-time data analytics

Advanced telematics systems often include a customizable dashboard that makes it easy for users to track vehicles in real time, as well as access aggregated data — which can then be turned into actionable insights. Rather than paying someone to perform manual data entry, the process of collecting information from IoT devices can be fully automated, resulting in lower payroll costs, faster processes, and higher data accuracy.

Also, with AI-enabled integrations, a telematics system can be trained to identify negative characteristics in a driver’s behavior — like swerving or speeding — and, in response, send an immediate notification to that driver’s manager.

Enhanced safety measures

By having access to critical data, whether it be related to the condition of the vehicle or the driver’s behavior, fleet managers will help create safer environments for employees and others on the road. If a truck has dangerously low tire pressure, the manager can send it in to get fixed before it pops. Or if a cab driver is consistently disobeying traffic laws, their manager can suspend or terminate them before an accident occurs.

It’s also important to acknowledge the financial benefits of safer working conditions. With more control over the safety of their vehicle operations, along with the ability to prove those safety measures through data, businesses can significantly reduce the cost of their insurance.

Adoption of mobility-as-a-service (MaaS)

Rideshare apps like Uber and Lyft are the most common examples of MaaS among consumers, but there are also similar solutions designed specifically for businesses, such as Alphabet and Mobellio. And a growing number of companies are incorporating these services into their delivery, shipping, and transportation operations — resulting in lower costs and a reduced carbon footprint.

By adopting MaaS solutions with built-in telematics, your business doesn’t have to invest in its own GPS sensors, telematics software, and so on. While many fleets will still require their own customized system, companies with less complex needs can turn to MaaS for off-the-shelf solutions.

Greater focus on cybersecurity

During the COVID-19 pandemic, as businesses across industries accelerated their digital transformation efforts, data breaches skyrocketed. And unfortunately, many companies did not have the infrastructure necessary to combat advanced cybercriminal activity. Since telematics deals with the flow of data between remote vehicles and devices, cybersecurity has become a top priority for businesses in the auto industry. Sensitive data — such as the real-time location of an employee or a customer’s address — must be protected at all costs.

Wrapping up

The advancement of telematics is driving digital transformation in the automotive industry. With a cutting-edge system for tracking and maintaining your business’ vehicles, you can cut costs, increase productivity, and boost revenue. But implementing a modern telematics system — one that fully leverages the power of AI, IoT, and 5G — is no easy task, as it requires significant time, resources, and technical expertise.

By partnering with Codal, you can embrace powerful technologies — like those in the field of telematics — and create a wide range of new possibilities for your organization. As we’ve done for many clients in the past, we’ll help plan and execute a digital transformation strategy for your business that focuses on effective data management, high internal efficiency, and powerful customer experiences.

Interested in learning more about telematics and how Codal can help enhance your business? Get in touch with a member of our team today!



Codal Inc.

A digital solutions partner with a data-driven approach that empowers companies at the intersection of UX design & development. https://www.codal.com/